Market Overview
The S&P 500 has surged nearly 80% over the last five years, currently nearing record highs at a price-to-earnings ratio of 32. Concerns about geopolitical tensions, inflation, and monetary policies have investors bracing for a potential market downturn.
Companies to Watch
Analysts recommend investing in Costco (NASDAQ: COST) and Amazon (NASDAQ: AMZN) during a possible market crash. Costco has shown strong growth, with revenue and EPS increasing at CAGRs of 10.5% and 15.1% from fiscal 2020 to 2025, respectively. It boasts 147.2 million cardholders and 924 warehouses as of the first half of fiscal 2026, although its renewal rate dipped to 89.7% due to a loss of digitally signed members.
Amazon, the leading e-commerce and cloud services company, has a Prime membership base of over 240 million and controls nearly one-third of the cloud infrastructure market. Revenue and EPS grew at CAGRs of 11% and 22% from 2021 to 2025, with projected growth rates of 14% and 21% respectively until 2028. Both stocks are currently trading at high valuations of 50 and 31 times this year’s earnings, leading investors to consider potential purchases if a market crash occurs.
5 Stocks Our Experts Predict Could Double In the Next Year
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